Anything I should look hard into? Potential problems that could be squashed. I'm pumped to get it and look forward to correspondence with you guys on here.

Aside from the normal late model XJ issues, like the front speakers not working, window lock getting stuck, the rear hatch needing some love to open, and rear dome light issues.

The cylinder head (0331 casting) on the 2000-2001 models is known to crack, some crack the first time they overheat, others last forever, others crack for no apparent reason. Just keep an eye on the oil and coolant levels, if the oil looks like chocolate milkshake or latte then the head is toast, along with most of the bearings surfaces in the engine. Coolant doesn't magicaly disappear, if a large amount is missing after a fairly short time, its going some where its not supposed to go, most likely the ground or into the oil or cylinders. If the head issues bother you there are a few companies that offer a 0331 TUPY head, which is the improved fixed-the-cracking-issue cylinder head, if you're willing to pay up for the new head and install it.

Also you'll have a low pinion d30 front, its not a deal breaker, but the high pinion is better if you plan to off road it. If it has ABS it will also have a d35 rear axle, also not a deal breaker, but it will be and issue when you try to run larger tires and take it off road. If its doesn't have ABS it could have either the d35 or the Chrysler 8.25 axle, the 8.25 is the more desirable axle. When you look at it the 8.25 has a flat lip, about 5in long, on the bottom of the differential housing, the D35 has a rounded housing bottom.

8.25 looks like this

The D35 looks like this

The one you're looking at also has the NP242 transfer case, its weaker (not by very much, people swap 231>242 and 242>231 all the time) than the NP231 case, the NP231 case also doesn't have the full time 4wd option like the NP242 has, which is nice on icy roads. However aftermarket support (SYE tail housings, 4:1 low ranges) for the NP242 are non-existent.

If you plan on using it as a daily driver, the NP242 transfer case is actually better in my opinion. It has less aftermarket support, but the full-time option allows you to use 4x4 on roads that are not 100% slippery. Around here, when it snows they often plow only half the road which means depending on traffic you are sometimes on dry pavement and sometimes on slippery surfaces. This leads to lots of in and out of 4x4 with the regular part-time 4-wheel drive system. The full-time 4x4 allows you to stay in 4x4 regardless of the surface.

The Dana 35 vs. C8.25 axle is also not a big deal unless you want to run tires larger than 31". For a daily driver, both axles will work fine.

Most importantly is how was the Jeep maintained? Do the fluids look good? Does it have service records? 2000 and 2001 Cherokees were known for cracking cylinder heads when neglected and overheated. The signs of this are unexplained coolant loss, and chocolate milk colored oil. It also will have some white milky buildup under the oil cap. Check the oil and coolant condition when buying it.

The head is not that hard to swap (I have a how-to in my signature) but with great maintenance the engine will last a long time and you won't have a problem.